Saturday, August 23, 2008

McCain: People with Subprime Mortgages Need to Work a Second Job, Skip a Vacation

Coronado Shores

It is truly unbelievable how out of touch John McMansions is with the problems of ordinary Americans.

TPM: McCains Bought Second Beach Condo At Around Time McCain Said Struggling Homeowners Needed To Skip Vacations

Here's the speech he gave chastising Americans, while he was buying (or his rich heiress wife was buying) his 10th, or 11th, or 12th house.

JOHN MCCAIN: A sustained period of rising home prices made many home lenders complacent, giving them a false sense of security and causing them to lower their lending standards. They stopped asking basic questions of their borrowers like "can you afford this home? Can you put a reasonable amount of money down?" Lenders ended up violating the basic rule of banking: don't lend people money who can't pay it back. Some Americans bought homes they couldn't afford, betting that rising prices would make it easier to refinance later at more affordable rates. There are 80 million family homes in America and those homeowners are now facing the reality that the bubble has burst and prices go down as well as up.

Of those 80 million homeowners, only 55 million have a mortgage at all, and 51 million are doing what is necessary -- working a second job, skipping a vacation, and managing their budgets -- to make their payments on time. That leaves us with a puzzling situation: how could 4 million mortgages cause this much trouble for us all?

What's wrong with all those poor people? Couldn't they just marry up and let their rich spouse buy them another house?

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